Tr?id=566623520170033&ev=PageView&noscript=1

ÍøÆØ³Ô¹Ï

Fidelity Hit with $1.65 Million Fine Over Options Trading Standards

Posted on October 25th, 2023 at 11:34 AM
Fidelity Hit with $1.65 Million Fine Over Options Trading Standards

From the desk of Jim Eccleston at ÍøÆØ³Ô¹Ï 

Massachusetts Secretary of the Commonwealth, William F. Galvin, has imposed a $750,000 fine on Fidelity Brokerage Services for their alleged past practice of hasty approval of clients' applications to trade options.

Galvin's office stated that Fidelity displayed a negligent and lackadaisical approach when assessing clients' capability to engage in trading risky securities.

The Financial Industry Regulatory Authority Inc. (FINRA) also penalized Fidelity with a $900,000 fine. FINRA claims that from May 2017 to April 2022, Fidelity failed to exercise proper due diligence before granting customers the ability to trade options. Fidelity's screening process involved a flawed electronic system to evaluate online applications for options trading, followed by a review by a principal at the firm to determine customer approval for options trading.

According to InvestmentNews, Fidelity has fully cooperated with the Massachusetts Securities Division. Fidelity consented to FINRA's findings without admitting or denying them.

 

ÍøÆØ³Ô¹Ï LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

Thank You from the bottom of our hearts for all you have done for us. When we realized this was a very bad investment - we did not know where to turn for help. Then we received your name. When we called you - you were so kind to us and then agreed to help us. For this we are so very grateful. The world would be a much nicer place if there were more people like the two of you in it. ÍøÆØ³Ô¹Ï will always remember all the help and kindness you have shown us. Thank you so very very much for everything.

Wayne and Judy S.

LATEST NEWS AND ARTICLES

1778171646 Law
May 7, 2026
FINRA Bars Former Raymond James Broker for Refusing Testimony in Unauthorized Trading Probe

A former registered representative with Raymond James has been barred from the securities industry after refusing to cooperate with a Financial Industry Regulatory Authority (FINRA) investigation into alleged unauthorized trading activity.

1778084309 Law
May 6, 2026
FINRA Outlines Key Rulemaking Priorities and Recent Developments in Quarterly Agenda

The Financial Industry Regulatory Authority (FINRA) recently released its Quarterly Regulatory Policy Agenda, offering a detailed view of its rulemaking priorities, pending proposals, and recently approved regulatory changes.

1778000603 Law
May 5, 2026
Commonwealth Financial Network Resolves SEC Conflict of Interest Case

Commonwealth Financial Network has agreed to pay $5 million to resolve a long-standing conflict of interest case brought by the Securities and Exchange Commission, according to reporting by ThinkAdvisor.